Paul Thompson, President, Ascension Capital Advisors

In an interview with Invest:, Paul Thompson, president of Ascension Capital Advisors, discussed the firm’s growth, customized planning process, and relationship-driven service. “We are seeing greater demand for in-depth advice and a one-on-one relationship with someone who can help clients and their families along their wealth journey,” Thompson said.

What milestones have defined Ascension Capital Advisors’ recent growth?

The past 12 months have been a major year of growth. We increased our assets under management by 50% and recently reached $1 billion under management, which is a significant milestone for our firm.

It has been exciting to see clients and advisors continue to join us. We also hired three people during the past 12 months and now have seven advisors on the team.

How does the firm’s service philosophy shape its client relationships?

Our founding principle is a service mindset. We want to come alongside our clients and partner with them. We are not only an investment management firm or a financial planning firm. We’re really a full-service wealth management firm.

For us, that means wanting to be best in class in client service and walking alongside people wherever they are in their wealth journey. Some clients are 30 years old, while others are 80, so their goals and objectives differ. Wherever they are, we want to help coordinate the whole process.

How do you balance long-term investing with a more defensive approach?

The process is customized because families have different risk parameters and financial goals. It depends on what each family is trying to accomplish.

Once we determine the client’s long-term goals and objectives, we apply a customized investment management process. That may involve long-term investing across Ascension’s proprietary strategies or a more defensive approach. The decision is based first and foremost on what the client wants to achieve.

What role do alternative investments play in client portfolios?

We entered the alternative investment space in 2018. The partners we have joined in specific niche areas have been beneficial for our clients and us. The growth has been driven by demand from higher- and ultra-high-net-worth families that want exposure to unique investment ideas.

The opportunities include private equity, private credit, hedge funds, and individual real estate deals. The biggest misconception is that alternative investments are one clearly defined category. It is really a large box and can mean almost anything. Having a professional partner to guide clients through the specific investments is important so they understand what they are entering.

Why is financial planning central to Ascension’s model?

Financial planning is core to what we do. When my father started the firm almost 30 years ago, the financial planning world was different. He began doing this work before it became common.

Financial planning is the backbone of our decisions. Because every client’s process is customized, we must understand each individual’s or family’s financial situation and what they are trying to achieve. We are working to bring family-office-like services to every individual who is part of Ascension.

How do you view Houston’s economy and the opportunities it creates?

Houston has changed considerably since I was growing up here. On my drive to the office, I see how the Galleria area continues to change. There are new buildings, offices, and high-end restaurants, and the landscape no longer looks the way it once did. A school near our office is in an area where my grandfather used to hunt, and it is now a fully developed neighborhood.

We see considerable business activity and entrepreneurship among our clients and professional network. New ideas and businesses are emerging, and Houston creates an environment that inspires people to do business here. It is one of the country’s most diverse cities.

Within our industry, the wealth management and registered investment advisor space continues to grow. We are seeing consolidation as advisors merge into larger firms. Ascension also completed an acquisition during the past 12 months when other advisors wanted to join the firm because of what we are building.

What are you seeing in the 401(k) segment?

The 401(k) space is one of the fastest-growing segments of our business. The country has a significant retirement-readiness gap. We regularly see people delaying retirement because they are not financially prepared, and there is a major gap in knowledge and education.

Companies have become a primary source of financial literacy education for employees because many people are not receiving that education in high school or college. We hear from employees who want more resources and benefits from their companies so they can become retirement ready.

We tell employers that a best-in-class 401(k) program needs an advisor willing to provide in-depth service and bring financial education to employees.

How can Ascension grow without diluting personal service?

This is probably the question I focus on most. We want to continue growing while delivering the best service possible.

We benchmark Ascension against other firms. We recently spoke with Charles Schwab, where we custody most of our private wealth clients’ assets. Compared with firms in our peer group that manage between approximately $500 million and $1 billion, we have more advisors and staff.

That reflects our commitment to always have more people assigned to families and households so there is no decline in service as we grow. I believe this service is also a cause of our growth. People see the level of service clients receive here compared with other places, and that has helped drive expansion.

How are technology and artificial intelligence changing wealth management?

The industry has changed significantly since I joined Fidelity Investments in 2011 and Ascension in 2014. Entrepreneurs must adapt and try to stay ahead of trends.

I view technological advances as an opportunity to serve clients better. I do not think human advice is going away. If anything, we are seeing greater demand for in-depth advice and a one-on-one relationship with someone who can help clients and their families along their wealth journey.

Technology is another tool we can use to become more efficient, improve our back office, and help advisors stay ahead of the curve as they serve families.